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Conforming Loans in Burlingame
Conforming loans in Burlingame offer competitive rates for homes that fall within federal loan limits. These mortgages meet Fannie Mae and Freddie Mac guidelines, making them attractive to lenders and borrowers alike.
In San Mateo County's high-value market, many Burlingame properties exceed conforming limits. However, condos, townhomes, and smaller single-family homes often qualify. The 2024 conforming limit for most counties is $766,550, with higher limits for high-cost areas.
Burlingame buyers benefit from the stability and predictability conforming loans provide. These mortgages typically carry lower interest rates than jumbo loans because lenders can sell them to Fannie Mae or Freddie Mac, reducing their risk.
Conforming loans require a minimum credit score of 620, though 680 or higher secures better rates. Down payments start at 3% for first-time buyers and 5% for repeat purchasers. Private mortgage insurance applies when you put down less than 20%.
Your debt-to-income ratio should stay below 43% in most cases, though exceptions exist with strong credit. Lenders verify employment, income, and assets through standard documentation. W-2 employees typically have the smoothest approval process.
Self-employed borrowers qualify with two years of tax returns showing stable income. Rates vary by borrower profile and market conditions. Closing costs typically range from 2% to 5% of the loan amount.
Banks, credit unions, and mortgage brokers all offer conforming loans in Burlingame. Each channel has advantages. Banks provide direct relationships but limited product options. Credit unions offer member benefits but may have slower processing.
Mortgage brokers access multiple lenders simultaneously, comparing rates and terms across the market. This approach often yields better pricing and faster approvals. Brokers handle the comparison shopping so you don't have to contact each lender individually.
Online lenders have grown popular for conforming loans due to streamlined applications. However, local expertise matters when navigating San Mateo County's competitive market. Peninsula properties often need experienced guidance through appraisal and closing.
Burlingame buyers often start shopping for conforming loans only to discover their target homes exceed limits. Working with a broker early prevents this surprise. We assess property values and loan limits before you commit to a search area.
Timing matters significantly with conforming loans. Rate locks typically last 30 to 60 days. Peninsula markets move quickly, so coordination between your purchase timeline and rate lock is essential. We help align these moving parts.
Many Burlingame buyers benefit from combination strategies. A piggyback loan pairs a conforming first mortgage with a smaller second loan, avoiding jumbo territory. This approach works particularly well when you're just over the conforming limit.
Conforming loans differ from jumbo loans primarily in loan amount and requirements. Jumbos exceed federal limits but demand higher credit scores, larger down payments, and more reserves. If your Burlingame home stays under the conforming limit, you'll typically save money.
FHA loans offer lower down payments but include upfront and annual mortgage insurance that lasts the loan's life in most cases. Conforming conventional loans let you remove PMI after reaching 20% equity. For buyers with solid credit and decent savings, conforming beats FHA long-term.
Adjustable rate mortgages exist in both conforming and jumbo categories. A conforming ARM combines the benefits of meeting federal guidelines with the initial rate savings of an adjustable product. This works well for buyers planning shorter ownership periods.
Burlingame straddles the line between conforming and jumbo territory. Downtown properties and homes near Burlingame Avenue typically require jumbo financing. Neighborhoods farther from downtown and smaller properties often qualify for conforming loans.
San Mateo County's high-cost area designation affects conforming limits. Check current limits annually as they adjust with market conditions. Property type matters too—condos and townhomes more frequently stay within conforming boundaries than detached homes.
Peninsula buyers face strong competition. Conforming loan pre-approval carries weight with sellers because these mortgages have predictable underwriting. Your offer becomes stronger when sellers know your financing meets standard guidelines and rarely falls through.
San Mateo County qualifies as a high-cost area with higher conforming limits than the baseline. Limits change annually based on market conditions. Check current year limits as they adjust each fall for the following year.
Yes, conforming loans allow down payments as low as 3% for first-time buyers and 5% for repeat buyers. You'll pay private mortgage insurance until reaching 20% equity, but the option makes homeownership accessible sooner.
Property taxes factor into your debt-to-income ratio calculation. San Mateo County tax rates affect how much home you can afford. Lenders include estimated taxes, insurance, and HOA fees in qualification.
Scores of 740 or higher typically secure the best pricing. You can qualify with 620, but rates improve significantly as scores rise. Even a 20-point increase can save thousands over the loan term.
If your home price exceeds conforming limits, jumbo is your only choice. If you're close to the limit, consider whether slightly reducing your price range allows conforming financing and better rates.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.